In December, the Solomon Pond Mall (MSBAM 2013-C7) was sold at a receivership sale for $8.5 million ($21/sf), well below the remaining loan balance of $81.7 million ($205/sf). The collateral is comprised of 399,266 sf of an 884,758-sf super-regional mall in Marlborough, MA. The loan was initially transferred to the special servicer in June 2020 and failed to pay off at its November 2022 maturity date. A receiver was appointed in September 2021, and the property was marketed for sale throughout 2025.

SL Green plans to sell $2.5 billion in stakes across multiple of its properties, including, in the CMBS universe, a 25% stake in 245 Park Avenue (PRKAV 2017-245P, multiple conduits). This news comes ahead of the loan’s scheduled maturity in June 2027, with the total financing package comprising $1.08 billion in A notes, $120 million in B notes, and $568 million in mezzanine financing. SL Green initially acquired 245 Park Avenue and assumed the loan in September 2022 following bankruptcy proceedings with HNA Group, the prior borrower. SL Green initiated a $171.4 million renovation plan upon acquisition and subsequently sold a 49.9% stake in the property to a U.S. affiliate of Mori Trust Co. Ltd., which was previously highlighted in a June 2023 credit alert. After the renovation, occupancy increased to 93% as of September 2025 from 75% in December 2023.

Per December investor reporting, the Altamonte Mall (MSC 2013-ALTM) received a June 2025 appraisal value of $169 million ($266/sf), in line with KCP’s concluded value since January and representing a notable decline from the $275 million ($429/sf) value at issuance. The loan, secured by a 641,199-sf portion of the 1.2 million-sf superregional mall, transferred to special servicing in February 2025 after failing to pay off at maturity. Refinancing efforts have been unsuccessful, and the special servicer continues to dual track a workout with the borrower while pursuing foreclosure.

According to the December special servicer commentary for the 175 West Jackson loan (COMM 2013-CR12, COMM 2013-CR13, COMM 2014-CR14), a buyer has been identified for the collateral property, a 1.5 million sf, class-A office building located in the Central Loop submarket of downtown Chicago, and a sales contract has been executed, with closing anticipated in December or January 2026. The loan has been specially serviced since November 2021 and failed to pay off at its November 2023 maturity. The property has continued to struggle, with occupancy declining to 53% as of June 2025 and negative cash flows reported for the trailing 12 months ended June 2025.

Demolition of the 625 Madison office building has been confirmed complete as of December, following the filing of demolition permits in September 2024 and a planned nine-month teardown. The demolished building was the non-collateral improvement atop land securing the $168.9 million 625 Madison Avenue loan (COMM 2014-CR14, COMM 2014-CR15). In February 2024, The Related Companies announced that it had acquired both the leased fee and leasehold interests in the 525,031 sf, class-A office property for $632.5 million ($1,205/sf), with plans to redevelop the site into a 68-story mixed-use property featuring 101 condominium units, two floors of retail, and multiple amenity levels. The loan’s final maturity is December 2026, which coincides with the mandatory redemption of Related’s preferred equity.

During the November 2025 remittance period, 15 assets within the KCP coverage universe were resolved with a loss greater than 2% of the unpaid principal balance (UPB). KCP projected cumulative losses across the 15 resolved assets of $169.8 million (67.5% WA loss severity) one month prior to the November remittance, which compared to actual realized losses of $155.3 million (59.2%).

The Federal Reserve cut its benchmark rate by 25 basis points (bps) on December 10 in a move that was widely expected by market participants. The path forward remains uncertain, as three officials dissented from the decision—an action rarely taken. Chair Jerome Powell indicated the cut was driven by signs of a weakening labor market. In addition, the Fed announced it will begin expanding its balance sheet this month by purchasing $40 billion in securities, aiming to boost liquidity in short-term funding markets. Looking ahead to 2026, markets broadly expect at least one additional rate cut, with expectations skewed toward two cuts (31.1% probability).

In securitized markets, private label commercial mortgage-backed securities (CMBS) issuance reached $124.7 billion year-to-date (YTD) through December 12, up from $104.7 billion over the same period in 2024. This year has also been an exceptionally strong year for commercial real estate (CRE) collateralized loan obligation (CLO) issuance, which has risen to $30.6 billion YTD from $8.7 billion in 2024.

Per December investor reporting, the 782-key PoHo Portfolio (MSC 2019-PLND), received a September 2025 portfolio appraisal value of $106.1 million ($136,000/key), a notable decline from the $151.3 million ($193,000/key) appraised value in August 2024 and $340.3 million ($435,000/key) at issuance. The two-property portfolio consists of the 455-key Hilton Portland and 327-key The Duniway. The $240.0 million loan transferred to special servicing in June 2020 for monetary default and the properties became REO in March 2023. A non-recoverable determination was made in May 2024 and as of December 2025, non-recoverable interest totals $31.6 million. KeyBank Real Estate took over as special servicer in January 2025 and began marketing the portfolio for sale shortly after.

Ashford Hospitality Trust (AHT) announced in December that its board has formed a special committee to evaluate strategic alternatives, including a potential sale of the company. The Dallas-based lodging REIT, which holds ownership interests in approximately 70 hotels comprising over 17,000 rooms, noted that its equity valuation continues to trail underlying real estate values despite recent efforts to improve adjusted earnings, sell select assets, and reduce leverage. As of September 2025, AHT has approximately $2.6 billion in total loans, 95% of which are floating rate.

KBRA Credit Profile (KCP) reviewed its commercial mortgage-backed securities (CMBS) coverage universe and identified 74 properties (17,135 keys) securing nine loans—$2.4 billion in unpaid principal balance (UPB)—across eight CMBS transactions that have exposure to AHT.

The $80.3 million Peachtree Mall loan (SGCMS 2016-C5, WFCM 2016-NXS6, CSAIL 2016-C7, and WFCM 2017-RC1) was transferred to the special servicer in November and later defaulted at maturity in December. Special servicer commentary indicates that a pre-negotiation letter (PNL) has been executed, and the borrower is seeking an extension. The loan is secured by a 621,367-sf portion of a regional mall in Columbus, GA, which has consistently underperformed the originator’s underwritten assumptions. Annualized NCF for the first half of 2025 was down 30% from underwritten issuance figures. On a positive note, retailer Beauty Master held its grand opening on November 1, occupying At Home’s former 86,000-sf (14%) anchor space, as previously highlighted in a credit alert on July 2, 2025.